Factors Affecting ecommerce adoption in Nigerian Banks

by Aghaunor, Lavin; Fotoh, Xavieria

Abstract (Summary)

This study’s focuses on “Factors Affecting the Adoption of Electronic Commerce:
Evidence from Nigerian Banks”. There are three reasons for concentrating on this topic: 1)
Limited research on ecommerce in developing countries particularly in Africa, 2) Nigeria
with a population of 135 million is a potentially lucrative market for ecommerce services,
and 3) The banking sector has been most successful with ecommerce in Nigeria.
Since ecommerce is still a relatively new concept in Nigeria despite, innovation diffusion
theory was used as a foundation for the study. Drawing from technological innovation
literature, an integrated model of ecommerce adoption in Nigerian banks was developed.
Nine variables affecting the adoption of ecommerce were identified. They are: top
management support, organizational competency, IT capability, perceived benefits,
perceived compatibility, perceived complexity, supporting industries, market, and
government e-readiness.
An empirical study of banks that were using ecommerce was conducted in order to answer
the research questions. The commercial banks in Nigeria make up the population of this
research. Banks that use ecommerce were identified by examining their websites; after
which managers and executives were approached and asked to participate in the research.
Data was collected by means of survey questionnaires and semi-structured interview.
Nine hypotheses were drawn based on the variables identified. All but one of the hypotheses
were confirmed. The rank of the factors affecting adoption of ecommerce (in descending
order of impacts) is: Perceived complexity, Perceived benefits, Organizational competence,
Perceived compatibility, Supporting industries e-readiness, Management support,
Market e-readiness, IT capability, and Government e-readiness.
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